A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead):

		Plus		Max
Units produced		200		16,400
Batch size (units)		5		410
Number of setups		40		40
Direct labor hours per unit		6		6
Total direct labor hours		1,200		98,400

Cost per setup	$	1,992
Total setup cost	$	159,360

With traditional allocation of overhead costs, using direct labor hours as the allocation base, the setup cost portion of overhead that is allocated to each unit of product for Plus and Max, respectively is:

Multiple Choice

• $1.60; $1.60.

• $15.36; $15.36.

• $9.60; $9.60.

• $320.00; $26,240.00.

• $200.00; $16,400.00.